8th Feb 2016 09:54
LONDON (Alliance News) - LED International Holdings Ltd said Monday it has opted to terminate its proposed joint venture with Shenzhen Ruihetai Industry Co Ltd after further discussions with its lawyers in China and the shareholders of Shenzhen Ruihetai.
The company said that following these talks it was concluded that the proposed joint venture "did not achieve the original goals of the parties."
LED's shares have been suspended since December due to the publication of company's results for the year to end-June 2015 being delayed. The company plans to publish its results for the year to end-June 2015 in the second quarter of 2016. It attributed the delay to the first quarter being a "peak season for audit firms in Hong Kong."
The company said trading conditions in LED markets in China remain challenging, and warned that it has experienced "difficulties and delays in collecting receivables from certain of its customers." As a result LED International's working capital position is constrained, it said.
LED International said, given these constraints, it is likely to seek to raise funds in the short to medium term through the issue of equity or debt, or potentially through the restructuring of its existing debt facilities.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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